Repair/Replacement of damaged imported capital goods with the overseas supplier.

[SHIVKUMAR SHARMA]

Dear Experts

Last week we have Import the Capital goods from UK in India & the same is received in damaged condition.now we want to return the same to our overseas supplier for repair/replacement. we have not taken cenvat credit on it. you are requested to please suggest me the correct procedure have to be followed by me for excise & customs at your earliest possible.

Thanks with regards

SHIVKUMAR SHARMA

[Rajagopalan Ranganathan]

Sir,

As per para 5 of CBEC's Circular No. 15/2011-CUS dated 13.10.2011 re-export of imported goods, which are found to be defective /unfit and/ or for re-export on account of any other reason, may be permitted by the Commissioner of Customs, subject to fulfillment of the following conditions:

(i) re-export of goods shall take place from the same port from where the goods were imported;

(ii) the goods are re-exported within 6 months from the date of import;

(iii) the Asstt. /Dy. Commissioner of Customs is satisfied about the identity of the goods;

(iv) The goods are not put into use after import;

(v) At the time of allowing the re-export, Customs shall issue a re-credit Certificate containing particulars of scrip used, date of import of re-exported goods and amount debited while importing such goods. There shall be no need for issue of fresh scrip in such cases by DGFT regional offices;

(vi) Customs shall permit use of the said re-credit amount to the extent of 98% only;

(vii) The validity of re-credit certificate shall be for six months from the date of issuance of re-credit certificate; and

(viii) The remittances have to be properly accounted for as per the prevalent guidelines for the import and the export of the goods.

Condition (v) above is applicable only when you avail schemes like DEPB, SFIS/VKGUY, TPS / DFCE / FMS / FPS / HTPEPS/SHIS/ Agri Infrastructure Incentive scheme under VKGUY respectively.

[Rajagopalan Ranganathan]

Sir,

In continuation of my response to your query you can use the following form for obtaining permission from the Commissiomer of Customs-

Customs Series Form No. 20

[See Foreign Privileged Persons (Regulation of Customs Privileges) Rules, 1957.]

APPENDIX V

[See Rules 4(2) and 4A(3)(ii)]

Form of application for permission to re-export/sell or dispose of the goods imported/purchased from bond free of duty (to be submitted in quadruplicate).

I.......................................... (Name and designation of the privileged person or the member of the staff) of.................................. (Name of the Mission , Consular Post/Office, etc.) hereby state that I wish to re-export/sell the goods, the description of which has been given in the Schedule annexed hereto, to........................................ ...........................................................(Name and address of the prospective purchaser) who is entitled/not entitled to exemption from duty on goods imported by him for his personal use/for the official use in his Mission/Office/Consulate. The price for which the goods in question are likely to be sold is approximately Rs........... I request that the concurrence of the Central Board of Excise and Customs/Ministry of External Affairs to this sale/re-export may kindly be communicated to me.

Place :	Signature of the applicant Designation of the applicant
Date :	Name of the Mission/Consular Post/Office etc.

SCHEDULE

1. Name of the goods to be sold

2. Quantity and Registration No. (in case of motor vehicles)

3. Whether imported or purchased from bond

4. Whether purchased from privileged person, if so, his name and address

5. Whether imported/purchased for personal use/official use of the Mission, Consular Post/Office etc.

6. Date on which exemption certificate was signed and given

7. Number and date of the Bill of Entry for home consumption under which the goods were cleared  through Customs

8. Name of the port of importation into India

9. Date on which the undertaking was signed (to be filled in if the goods desired to be sold/re-exported are motor vehicles)

Place :

Date :

[M.F. (D.R.) Notification No. 32-Cus., dated 9.2.1979.]

AI Summary

Returning Damaged Imported Goods: Key Conditions for Re-Export Under CBEC Circular No. 15/2011-CUS Explained A forum participant sought advice on returning damaged imported capital goods to the overseas supplier for repair or replacement. An expert advised that re-export of defective goods is allowed under certain conditions outlined in CBEC's Circular No. 15/2011-CUS. Key conditions include re-export from the same port within six months, verification of goods' identity, and issuance of a re-credit certificate. The re-credit amount can be used up to 98%, valid for six months. Additionally, a specific customs form must be submitted to obtain permission for re-export, detailing the goods and their intended sale or disposal.